A Doji candlestick will provide very important information on its own or together as part of signals from other candlestick formations. It forms when a security's open and close prices are equal. The length of the upper and lower shadows can vary and the resulting candlestick sometimes looks like a cross, inverted cross or a plus sign. The best formation is when the open and close prices are equal, but this is not necessary.
A Doji formed alone implies that the trend is neutral and bullish or bearish confirmations are based on preceding price action and future confirmation.
What Is A Doji Candlestick Pattern?
The doji candlestick is one of the most common candlestick reversal patterns you will find in the market, in total there are 4 different types which are listed below. It is characterized by opening and closing prices that are virtually equal. A doji is a key trend reversal indicator.
Types of Doji Candles Identified
There are 4 different types of Doji candlesticks that are identified using this software.
The opening and closing prices are virtually equal.
Long Legged Doji
This reflects a great amount of indecision about the future direction of the underlying asset.
The long upper shadow suggests that the direction of the trend may be nearing a major turning point. It is formed when the opening and closing price of the underlying asset are equal and occur at the low of the day.
The long lower shadow suggests that the direction of the trend may be nearing a major turning point. It is formed when the opening and closing price of the underlying asset are equal and occur at the high of the day.
Trade Setup Using A Doji
The image below shows a classic example of price reversal after an uptrend when a bearish Gravestone Doji is formed, the success rate is higher when the candle is formed as it enters a resistance zone. This indicator can be used with the cTrader Support & Resistance Indicator. The gravestone doji is a variation of this reversal pattern and it forms when the open, low and close are equal and the high creates a long upper shadow.
Learn How To Trade Using Doji's
We do not just provide traders with an indicator to download we also provide educational material to learn how to trade using Doji candlesticks.
What Kind of Alerts Are There?
This indicator has 4 different types of alerts to help the trader which are a simple pop-up message on your desktop an Email, Telegram Bot and SMS text message. The last two provide instant messages so you get informed within seconds of the candle forming.
HOW TO CONFIGURE AND SET UP YOUR ALERTS
We provide full support and educational material to help you set up your email, telegram bot and SMS text message accounts so you can start receiving your alerts as soon as possible. There is also a free tool you can use to test that your settings are correct and to help you if you need it.
POP-UP WINDOW MESSAGE
This indicator will also display the classic pop-up window when an alert occurs.
How To Use The Input Parameters
Your adjustable parameters are all explained in a PDF document which can be viewed below.
Watch a Video Demonstration
The video has been uploaded to 1080p High Quality, so do not forget to set your U-Tube video quality to 1080p HD.
Duration: 9 minutes
How To Install
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.